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Corporate Finance · Quiz 1 · 23 Feb 2025 · January 2025 term

Question 13: The table below relates to the economy of Galaland, wher…

Question 13

+4 marksOne correct option

The table below relates to the economy of Galaland, where the typical consumer’s market basket consists of 1 pair of clothes and 3 packets of food.

YearPrice of a pair of clothesPrice of a packet of food
2017Rs 400Rs 30
2018Rs 380Rs 50
2019Rs 390Rs 70

If the base year is 2017, then the economy’s inflation rate (as measured by CPI) in 2018 is

  1. A

    8.16%

  2. B

    22.45%

  3. C

    -8.16%

  4. D

    -22.45%

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Correct answer

  • A

    8.16%

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Question 13 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 23 Feb 2025, in the January 2025 term (IIT M DEGREE AN EXAM QDB2 23 Feb 2025). It carries 4 marks.

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